Sebi slaps Rs 2.50 lakh fine on Tropical Securities


Market regulator Sebi has imposed a penalty of Rs 2.50 lakh on Tropical Securities and Investment for its failure to comply with the disclosure norms for shareholding while buying Prudential Pharmaceuticals Ltd (PPL) stock.

The Securities and Exchange Board of India (Sebi) order said that Tropical Securities and Investment had acquired 7 lakh shares of PPL from Clip Securities, which amounted to 13.59 per cent stake in the company.

Further, it had also purchased nearly 3.12 lakh shares of PPL, which represented about 6 per cent stake in the firm.

As per the norms, if a person acquires shares which entitle him to more than 5 per cent stake in a company in any manner whatsoever, he is required to disclose his stake to the company and to the concerned stock exchanges within four working days.

Sebi said Tropical Securities had failed to comply with the said norms.

"Having considered the facts and circumstances of the case and after taking into account the factors... I find that a penalty of Rs 2.50 lakh on the noticee (Tropical Securities) would be commensurate with the violations committed by the noticee in this case," Sebi's Adjudicating Officer D Ravi Kumar said in the order issued on Monday.

However, Sebi noted that the investigation report has not made available quantifiable figures to assess the disproportionate gain and amount of loss caused to investors as a result of the violations committed by the entity.

The matter relates to Sebi's probe into the alleged irregularities in the trading of PPL shares from March 5 to July 6, 2001.

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